enviri(NVRI) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenues for Q1 2025 were $548.3 million, a decrease of 8.7$600.3 million in Q1 2024[115]. - Harsco Environmental segment revenues decreased to $243.1 million, down 18.8$299.1 million in the prior year, primarily due to divestitures and lost contracts[115][116]. - Clean Earth segment revenues increased to $235.2 million, up 4.1$226.0 million in Q1 2024, driven by positive price and volume changes[115][119]. - Harsco Rail segment revenues decreased to $69.9 million, down 7.0$75.2 million in Q1 2024, impacted by lower demand and foreign currency translation[115][121]. - Total revenues for the three months ended March 31, 2025 decreased by $52.0 million, or 8.7$30.7 million, an increase of 18.9% from $25.8 million in Q1 2024[115]. - The operating margin for the consolidated company improved to 5.6$54.5 million, or 11.4%, for the three months ended March 31, 2025, primarily due to changes in revenue volume and mix, divestitures, and foreign currency translation[128]. - Selling, general and administrative expenses increased by $2.0 million, or 2.3$11.0 million for the three months ended March 31, 2025, an improvement from a loss of $15.7 million in the same period in 2024[137]. Cash Flow and Financing Activities - Net cash provided by operating activities was$6.6 million for the three months ended March 31, 2025, an increase of $5.3 million from the prior year[141]. - Net cash used by investing activities was$18.4 million for the three months ended March 31, 2025, a decrease of $4.8 million from the same period in 2024[142]. - Net cash provided by financing activities increased by$13.2 million to $26.1 million for the three months ended March 31, 2025, primarily due to higher net borrowings[143]. - The Company received$10.0 million in proceeds from the AR Facility during the three months ended March 31, 2025, compared to no proceeds in the same period of 2024[150]. - The AR Facility has a maximum purchase commitment of $160.0 million, increased from$150.0 million under amended terms in February 2025[149]. Debt and Compliance - The company's total debt as of March 31, 2025 was $1,393.3 million, an increase from$1,364.5 million at the end of 2024[146]. - The net debt to consolidated adjusted EBITDA ratio covenant is set at 4.75x for the quarter ended March 31, 2025[147]. - As of March 31, 2025, the total net debt to Consolidated Adjusted EBITDA ratio was 4.31x, below the permitted maximum of 4.75x, and the total interest coverage ratio was 3.03x, above the permitted minimum of 2.50x[148]. - The Company could increase net debt by $142.4 million while remaining compliant with debt covenants, or Consolidated Adjusted EBITDA could decrease by$30.0 million, or interest expense could increase by $22.4 million without breaching covenants[148]. Other Financial Metrics - A favorable net change in forward estimated loss provisions of$11.1 million was recorded in Q1 2025, related to long-term contracts, with no such adjustment in the prior year[125]. - The company faced a $4.0 million increase in severance and related costs due to restructuring activities in Q1 2025 compared to the same period in 2024[118]. - Total other comprehensive income was$8.7 million for the three months ended March 31, 2025, compared to a loss of $7.7 million in the same period in 2024[138]. Cash Management and Market Risks - At March 31, 2025, the Company's consolidated cash and cash equivalents included$101.2 million held by non-U.S. subsidiaries, with approximately 4.8% subject to regulatory restrictions[152]. - Non-U.S. subsidiaries held $28.7 million of cash and cash equivalents in consolidated strategic ventures, which may require partner approval for fund transfers[152]. - The Company has centralized cash management systems to reduce short-term borrowings and finance working capital needs[151]. - Market risks have not changed significantly from those disclosed in the Company's Annual Report for the fiscal year ended December 31, 2024[154]. Regulatory and Tariff Impacts - The company is assessing the impact of new tariffs imposed by the U.S. government and the European Union on its operations[112].